Justice Department files lawsuit to block JetBlue-Spirit Airlines merger

THe Justice Department A lawsuit was filed to prevent a merger of the two companies. JetBlue Spirit Airlines and Spirit Airlines that the consolidation would be detrimental to the airline industry.

The lawsuitA lawsuit was filed by the U.S. District Court for the District of Massachusetts to prevent the merger. “eliminate the unique competition that Spirit provides.”

JETBLUE EXPECTING DOJ LAWSUIT TO BLOCK MERGER WITH SPIRIT

“We allege that JetBlue’s proposed takeover of Spirit will only exacerbate concentration and further stifle competition in the airline industry. JetBlue’s elimination of Spirit as an independent company increases the risk that the remaining airlines, including JetBlue, would coordinate to raise prices or reduce capacity on particular routes where Spirit currently operates,” At a press conference, Attorney General Merrick Grland spoke.

According to the Justice Department, Spirit’s extremely low-cost airline tickets are cited as evidence of its illegality. “aggressive” And “disruptive” The industry was informed that JetBlue plans to end ultra-low cost flights will hurt customers.

“JetBlue’s proposed acquisition of Spirit would further increase the risk of coordinated behavior by eliminating Spirit’s aggressive, disruptive business model from the marketplace and by placing all of Spirit’s planes and crews under JetBlue’s control,” The court filing was as follows.

“In short, if not blocked, the merger of JetBlue and Spirit would result in higher fares and fewer choices for tens of millions of travelers across the country. The Justice Department is suing to prevent that from happening,” Garland claimed.

JetBlue would acquire Spirit for $3.8billion, and the merger is expected to be completed in the second half of 2024. Spirit shareholders approv